What is the Fitstop franchisee's obligation regarding reporting on prospective premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
9.1 Obligation to Secure an Approved Premises
- 9.1.1 Unless we have already agreed upon a location for the Premises at the time we execute this Agreement, you must use your best efforts to locate and enter into a lease agreement for a Premises within the Designated Territory that we approve within six (6) months of the Effective Date. As part of that process, it is your responsibility to: (i) inspect prospective premises; (ii) report back to us on a weekly basis with details of the prospective premises inspected in the prior seven (7) calendar days; (iii) consider any potential premises we may suggest; and (iv) if we deem necessary, engage an agent we approve to assist you in locating an appropriate premises within the Designated Territory.
- 9.1.2 If you have not located an appropriate premises by the time specified above, we may in our discretion (i) agree to terminate this Agreement or (ii) agree to extend the time you have to locate an appropriate premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, unless a location has already been agreed upon, franchisees must exert their best efforts to find and lease a suitable premises within their designated territory, securing franchisor approval within six months of the agreement's effective date. As part of this process, the franchisee is obligated to inspect potential locations and report back to Fitstop on a weekly basis, providing details of the prospective premises inspected during the prior seven calendar days. Franchisees must also consider any potential premises suggested by Fitstop and, if deemed necessary by Fitstop, engage an agent approved by Fitstop to assist in locating a suitable premises within the Designated Territory.
If a franchisee fails to secure an appropriate premises within the specified timeframe, Fitstop has the discretion to either terminate the agreement or extend the period allowed for location scouting. This clause underscores the importance of proactive engagement in the site selection process and adherence to Fitstop's guidelines.
This requirement ensures that Fitstop maintains control over brand image and operational standards by approving each location. It also places a significant responsibility on the franchisee to conduct thorough research and maintain open communication with Fitstop during the initial phase of establishing their business.